UK inflation eases to 9.9% from 10.1% but close to 40-year high

The prices of bread, eggs, milk, butter and other grocery basket staples are still rising, Carl Dinnen reports

The Office for National Statistics (ONS) said Consumer Prices Index inflation reached 9.9% in the year to August, down from 10.1% the previous month.

Experts had expected the figure to be unchanged between the two months.

The ONS said the biggest downward pressure on the inflation rate was the price of motor fuels, which has been falling in recent months.

The 6.8% drop in fuel prices was the highest since between March and April 2020, the early days of the pandemic when oil prices briefly went negative on some markets.

“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said.

"Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”What does inflation mean for me?

Inflation means that the price of things is increasing.

In the UK, food and petrol have got more expensive over the past year, while wages have stayed the same, leading to a cost of living crisis.

Left-of-centre Think Tank The Institute for Public Policy Research (IPPR) said further government intervention was needed to prevent “more poverty and more destitution” as a result of rising prices.

"The prices of food and clothing are continuing to accelerate upwards," said it's director.

“High inflation means high prices, and without intervention this will lead to more hardship, more poverty and more destitution."

What is being done to help?

Most recently the government announced a new energy price cap, to stop energy bills from soaring to levels many wouldn't have been able to afford.

People getting tax credits will also receive a cost of living payment across instalments beginning this Autumn.

Everyone will receive a non-means tested, one off payment to help pay their energy bills this Autumn too.